thanks for your input, I was thinking along the same lines, that's why I started this thread in the hope of getting some feedback (not exactly what I wanted to hear but probably the most realistic scenario).
How much does it cost to get market maker priveleges, (no cancel fees and margin benefits) so you can do what you did before in the DIA?
It's not just a matter of getting market maker privileges, but also of the spreads that are being used, and I'm afraid the analysis of Trajan is right on: a lot of options are priced to perfection nowadays. This would explain the fact that few locals have remained in these electronic markets. The edge in DIA options was quite big (relatively speaking), nothing compared to anything I see on Euronext. Nevertheless I wanted to think this through as an alternative.
I see plenty of wide option strikes every day. The advantage of electronic trading is you can narrow them, something a market maker in the pit cannot do.